Refinitiv financial analysts promised that gold prices will grow in the future. According to CNBC, now the precious metal has the potential against the background of inflation.
In August last year, the price of gold jumped to a record 2063 dollars per troy ounce, and now the precious metal costs $ 1877. However, as the Global Strategist of Investment Bank TD Securities Richard Kelly said, now gold is relatively cheap, but it definitely has potential.
In the first few months of 2021, gold was under pressure. This happened against the background of a sharp jump in the yield of the US Treasury Bonds, since traders began to bet on the fact that inflation would force the Federal Reserve System (Fed) to increase interest rates and mitigate their monetary policy. Gold is traditionally considered as a means of protection against inflation, but any attempts of central banks to curb inflation usually badly affect the precious metal.
In addition, Kelly pointed out, gold is usually estimated in dollars, so any fall of the US currency can lead to a price increase for metal.
Following the results of April of the current year, inflation in the United States acted to 4.2 percent and became the maximum since the world’s global financial crisis, and the prices broke the record of the decade